Kenya Regional Policy¶
This page contains human resources policies and regulatory requirements applicable to employees in Kenya.
Social Insurance Policy (NSSF & SHIF)¶
NSSF Contribution Rates (Effective February 2025)¶
Total Contribution Rate: 12% (shared between employer and employee)
| Contributor | Rate |
|---|---|
| Employee | 6% |
| Employer | 6% |
| Total | 12% |
Contribution Base Range¶
- Lower Limit: KES 6,000/month
- Upper Limit: KES 36,000/month
- Maximum monthly contribution: KES 2,160 (KES 1,080 each from employer and employee)
Contribution Calculation Example¶
| Monthly Salary | Employee Contribution (6%) | Employer Contribution (6%) | Total |
|---|---|---|---|
| KES 30,000 | KES 1,800 | KES 1,800 | KES 3,600 |
| KES 50,000 | KES 1,080 (capped) | KES 1,080 (capped) | KES 2,160 |
Social Health Insurance Fund (SHIF)¶
Effective from: November 1, 2024
Contribution Rate: 2.75% of gross salary (paid by employee)
| Monthly Salary | Employee SHIF Contribution (2.75%) |
|---|---|
| KES 30,000 | KES 825 |
| KES 50,000 | KES 1,375 |
| KES 100,000 | KES 2,750 |
Personal Income Tax Policy (PAYE)¶
Tax-Free Threshold¶
Monthly income KES 24,000 (Annual income KES 288,000)
Individual Income Tax Rate Table (2025)¶
| Annual Taxable Income | Tax Rate | Cumulative Tax |
|---|---|---|
| KES 0 - 288,000 | 10% | KES 0 + 10% of amount exceeding 0 |
| KES 288,001 - 388,000 | 25% | KES 28,800 + 25% of amount exceeding 288,000 |
| KES 388,001 - 6,000,000 | 30% | KES 53,800 + 30% of amount exceeding 388,000 |
| KES 6,000,001 - 9,600,000 | 32.5% | KES 1,737,400 + 32.5% of amount exceeding 6,000,000 |
| Over KES 9,600,000 | 35% | KES 2,907,400 + 35% of amount exceeding 9,600,000 |
Mandatory Deductions¶
- NSSF: Maximum KES 1,080/month (employee portion)
- SHIF: 2.75% of gross salary
- Affordable Housing Levy (AHL): 1.5% of gross salary (shared: 1.5% employer + 1.5% employee)
Labor Laws¶
Employment Contract¶
- Written contract required: Within 2 months of employment start
- Probation period: Maximum 6 months
- Notice period: Minimum 28 days (varies by employment duration)
Working Hours System¶
- Standard hours: 8 hours/day, 45 hours/week (office work)
- For manual work: 52 hours/week maximum
- Weekly rest: At least 1 day off per week
Overtime Pay Standards¶
- Weekday overtime: 150% of regular wage
- Weekend/public holiday: 200% of regular wage
Annual Leave System¶
- Minimum entitlement: 21 working days per year (after 12 months of service)
- Public holidays: 13 days per year
- Sick leave: 14 days with full pay + 14 days with half pay per year
Maternity Leave¶
- Duration: 3 months (90 days)
- Eligibility: After working for at least 12 months
- Protection: Employment protected during maternity leave
Last Updated: 2026-01-30